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Alpha-Mail                                               logo web sm 12mb
 A Tax Professional's Guide to Credits and Incentives, Courtesy of Alpharesults
 Vol. VIII No. 10 October 2014
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In this issue
Get Two Years of Tax Credits Instead of One!
Spotlight on Kentucky Credits and Incentives

Hello!

Welcome to Alpha-Mail, the monthly newsletter about tax credits and incentives for tax professionals.

This month, learn how you can help your clients double their training tax credits!  Also, some of you may have clients with operations in Kentucky, so be sure to see our overview of Kentucky credits and incentives.  We hope you can use this information to strengthen your client relationships! 

 

Thank you for reading Alpha-Mail -- please click reply to tell us what you think.

 

All the best, 

Dale&JimSigsSM1     

 Dale Stapler    Jim Tinsley
     Alpharesults, LLC 

 

 

 

Get Two Years of Tax Credits Instead of One!                
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Your Georgia clients may be able to get two years of Retraining Tax Credits if they start now. Since this tax credit is capped at $1,250 per employee per tax year, they may start their software roll out now, begin the initial training in 2014 (first tax year), then complete the training in 2015 (second tax year).
 
Here are some ideas that may help:
  1. Potential training in 2014 (initial training):
    • Overview & introduction to all employees, with coffee & donuts
    • Major business processes affected by the new system(s) - customer records, project management, financial control
    • Departmental platforms/changes
  2. Potential training in 2015 (more specific to your client's business processes):
    • For employee's job or task areas, such as accounting, order entry, and customer service
    • Job-specific training; for example, accounts receivable, accounts payable, and journal entry.
    • Software add-ons and specialized modules affecting individual teams.
Your client and their software vendor may be planning the implementation right now, so your input sooner rather than later will go a long way towards helping them double their benefits from tax credits. Instead of getting $1,250 per employee, why not have better-trained employees and get $2,500 per employee in tax credits??

 

 

JimSig  

 

 


Kentucky Credits and Incentives            
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      As we've mentioned before, our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.

We were recently asked about credits and incentives in Kentucky. I was able to speak with some Kentucky economic development professionals and learned some details (Kentucky Cabinet for Economic Development's Think Kentucky site click here).

Kentucky's main tax credits and incentives are meant to encourage new jobs and investments within the state.  Incentives and credits are available to a decent range of targeted industries that include manufacturing, energy, technology, motion picture production, headquarters facilities, and others.

Kentucky's credits and incentives range in complexity and are typically more generous than other states.
  • Kentucky Business Investment Program (KBI) - Up to 100% tax credit or wage assessment up to 5% of gross wages for projects creating 10 new jobs and $100,000 investment.
  • Kentucky Reinvestment Act (KRA) - Provides up to 50% of project costs and 100% of job skills upgrade costs for investments by manufacturers of $2.5 million (plus other qualifications) for up to 10 years.
  • Kentucky Enterprise Initiative Act (KEIA) - Sales and use tax refunds for minimum investments of $500,000 on materials, equipment, and IT.
  • Skills Training Investment Credit - Tax credit for existing companies, providing up to 50% of approved costs for occupational and skills upgrade training, limited to $500 per Kentucky resident not to exceed $100,000 per company per biennium.
  • Other incentives include tax credits, grants, loans, and reimbursements for "environmental stewardship," industrial revitalization, research and development, alternative fuel development, and small business investments, among others.
  • Bluegrass State Skills Corporation (BSSC) - A leading workforce training program, BSSC provides grants for training and employment services for new, expanding, and existing companies (click here).
Compared to Georgia, Kentucky has:
  • Similar tax rates and structure
  • A similar range of incentives and credits.
  • A somewhat smaller range of companies eligible for most credits.
  • Similar qualifying activities and somewhat smaller incentive $$ amounts.
  • A more hands-on approach to working with companies and projects.
  • BIG DIFFERENCE - most incentives must be pre-approved and carefully planned.
To summarize, Kentucky is very competitive with surrounding states. However, prospective and existing Kentucky businesses must get permission from the state to receive benefits from most of the credits and incentive programs.

Do any of your clients have Kentucky connections?  If so, check out the Blue Grass State's opportunities.

 
DaleSig

   

 


About Us
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Alpharesults has assembled a team with the specialized knowledge and approach required to obtain state tax credits and incentives.  We are not a public accounting firm.  Rather, our business services complement those of public accounting firms and do not create conflicted loyalties, because our professionals do not perform attestation work or other external audit functions.

   

We focus on small to medium-sized businesses and work with a wide variety of accounting firms.  For more information on our services, follow this link. 

 
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Contact Information
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email:  alpha-mail@alpharesults.com                   phone: 770-667-1332
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